Analysis: Bitcoin shorts are accelerating their entry, and the market is approaching the bottom of the long-term trend channel

According to Bloomberg, GSR co-founder Rich Rosenblum stated that Bitcoin may be approaching a technical bottom. The drop in Bitcoin below the 200-day moving average triggered a large number of leveraged long positions to be liquidated, while attracting more traders to establish short positions, further intensifying market selling pressure. Bitcoin is currently nearing the bottom of its long-term trend channel, and in the past year, it has received support multiple times around the current price level and slightly below.

Market analysis suggests that since October 21, Bitcoin has cumulatively fallen by about 25%. From October 30 to November 13, nearly $3 billion in net outflows occurred from U.S. spot Bitcoin ETFs. Recently, it has also been impacted by rising interest rate expectations, risk aversion triggered by the AI sector, and the recent hacking incident involving Binance, accelerating long liquidations and short entries.

Richard Galvin, executive chairman of cryptocurrency investment firm DACM, believes that the upcoming IPO of AI giant Anthropic may divert funds away from the cryptocurrency sector. The current price trend is very similar to the situation during the pricing period of the SpaceX IPO earlier this year. Cryptocurrencies still seem to be a source of short-term financing, especially for retail investors. Additionally, there are many other adverse macroeconomic factors.